Three destructive habits that will kill your trading day, week, month, or career.
Not having a plan. Get a plan, who cares if it is bad, start with something. You can build off of it and refine it. You have to be willing to spend the time to make the plan yours. You do not start anything without some level of planning. Trading is hard; your brain spends a lot of time in fast forward, affecting your memory. You can slow it down by having a plan and increase your brains ability to remember. A plan makes it possible to improve. Most importantly, a plan gives you a chance at removing emotion.
Forgetting why you are trading. The purpose of trading is to make money. Every action should bend to that goal. That does not mean every trade makes money. It means every trade gets to closer. If you are looking for comfort, get a teddy bear. If you are looking to be right, play trivial pursuit. If you want excitement, drive fast.
Letting it go. It is really important to separate what happened from how you felt. The more distance between the two the less time it takes to learn from that situation. Admitting you made a mistake or are wrong are necessary for letting it go. Unlike life, you get no credit for admitting you are wrong, it is just a part of trading. Neither matter unless you take action.
“You are the weakest part of your system”. That is a defeatist statement and completely untrue. It makes your expectation to fail easier to accomplish and more importantly it makes failure easier to handle. It shifts the pressure away from you and unto fate.
Would you fly on an airline if their motto was “Our pilots are the weakest part.” I do not think so. You are your system. Even if your system is automated you added the inputs, parameters.
Taking responsibility for your action is not easy. Taking control of the outcomes of trading or life is a huge responsibility. You will have moments of weakness, but you are not weak. The market does not go straight up and either does the road to success.
The rouble had already been appreciating as oil prices have recovered over the last twelve months, and growing optimism since Donald Trump’s victory in the US election has helped it become the best-performing emerging market currency since the vote, up just shy of 10 per cent.
President Trump’s calls for a normalisation of relations with Russia raised hopes of a relaxation of economic sanctions and encouraged international investors to return to the country.
The central bank has promised to spend more than Rbs113bn ($1.9bn) on foreign currency purchases this month to help slow the rouble’s climb, in an effort to boost the government’s spending power.
However, economists have been sceptical the bank would be able to have a big impact on the currency, and it has continued to rise a further 1.6 per cent since the announcement, including a 0.5 per cent rise this morning to take it to 57.99 per dollar.